Marinduque Vacation-An Alternative to Boracay, if Night Life is not required!

Planning to Retire Soon!

If you are planning to retire in the Philippines soon, I suggest you visit several excellent websites on pro's and cons of retiring in the Philippines. However if you want to retire in the provinces, where life is simple, standard of living cheaper, less traffic congestion and pollution, availability of fresh seafood and vegetables compared to the big cities, my island province is the place for you! If this is your first time in my site, welcome. Please do not forget to read the latest national and international news in the right side bar of this blog. Some of the photos and videos on this site, I do not own. However, I have no intention on the infringement of your copyrights. The photo above is the front yard of Chateau Du Mer-Our Retirement Home in Boac, Marinduque, Philippines

Tuesday, May 29, 2012

FaceBook Stock is still going downhill as I Predicted

I have been posting several updates on what is going on about FaceBook stocks, since its offerring at $38 per share. I felt at that time that the price was too high and FB stocks was not a good long term investment. So far, I am right on the money. I still will not buy FB stocks until it goes down below $20 per share. Here's the latest news on FB from CNN Money Magazine.
Facebook is finally a buy at ..(about $8 per Share?)
By Paul R. La Monica May 29, 2012:
Are you ready to take a spin? Even though the highest number on a roulette wheel is 36, fund managers say Facebook stock may not get back there anytime soon.
Facebook shares continue to plummet. Shares were down nearly 7% Tuesday, falling below the $30 level. The stock is now more than 20% below its offering price of $38. That makes it officially a bear market for the social network. But guess what? It's likely to get worse for Facebook (FB) before it gets better.
It's easier to make that case now, since we are starting to get a slow trickle of earnings and revenue forecasts for Facebook.
Analysts at firms who were underwriters for the IPO are not allowed to officially start coverage on the stock for another few weeks -- although it looks like bearish remarks from lead banker Morgan Stanley (MS) have already led to shareholder lawsuits.
Brokerages that were not part of the Facebook offering are free to issue reports on the stock. Because of the intense interest in Zuckerberg & Co., there already is a critical mass of coverage and earnings estimates. Ten analysts have earnings forecasts for 2012.
Related: Wall Street losses mount on Facebook IPO
For what it's worth, the median price target on the stock is $42, 40% higher than the current price. Analysts are forecasting earnings growth, on average, over the next three to five years of about 36% a year.
In other words, Facebook has a lot to live up to in order to satisfy Wall Street's so-called sell side. That's why many investors are still shying away from the stock.
I spoke with four fund managers Tuesday who all have big exposure to the tech sector. Not one of them said they are tempted to buy Facebook's stock yet. They all said the shares remain extremely overvalued.
"We have not invested in Facebook. Here's the reason: Growth expectations are high, and the company would have had to do a number things flawlessly to meet them over the next few years. There is no point investing in them this early," said Sunil Reddy, portfolio manager with Apex Capital Management in Dayton, Ohio.
Reddy said that he prefers Google (GOOG) to Facebook. Google trades at just 13.7 times 2012 earnings estimates. If you take that multiple and apply it to Facebook's consensus earnings estimate of 55 cents a share for 2012, you get a Facebook stock price of only $7.56! That's nearly 75% below its current price.
Facebook's stock has not been well received since its IPO. Some fund managers think the stock could fall a lot more before it becomes a bargain.
Of course, that probably is too bearish of a prediction. Facebook is still a solid company with strong growth prospects. It's not a fly-by-night tech destined for obsolescence; it just didn't deserve to be worth more than $100 billion on day 1 as a public company.

Chateau Du Mer Beach Resort and Conference Center

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ABOUT ME

I am a retired Filipino-American who loves writing, gardening and photography. My wife ( of 58 years) and I enjoy our snowbird lifestyle between US and the Philippines.

We have a small but very private beach resort (above video) in the beautiful island of Marinduque, Philippines. I have several blog sites (ten), a personal blog, blogs about retiring or visiting the Philippines and about our beach resort-CHATEAU DU MER.

Fruit Trees in the Gardens of Chateau Du Mer

The Mango Tree-I have three varieties in my Garden-The Indian, Guimaras and Carabao Mangoes
My caretaker/gardener informed me last month that due to the El Nino drought in Marinduque, two of my Durian trees died in spite of his vigilant watering. One of the tree was attacked by insects that looks like a big fly but yellowish in color that sucks the sap of the seedling. The roots of the other tree was attacked by ants residing in the soil. However, my other fruit trees, the rambutans( 2), the lanzones(2) and the jack fruits ( 2) trees are doing well. The above eight fruit trees were given to me by Retired General Recaredo Sarmiento of Boac and Lucena., about three years ago. General Sarmiento is the “atid” of my wife. “Atid” is the colloquial term for brother. Evidently, Macrine's father, the late Bernardo Jambalos was the Godfather of General Sarmiento during his baptism and comfirmation.
Gen Sarmiento's hobby is orchard planting, reforestation and farming.
The other fruit trees in my garden are guayabanos, cashew, avocados, starapples, duhats, ates, guavas, mangoes( 3 varieties) and papayas as well as several varieties of bananas . Of the above fruit trees, my favorite is the guayabanos, also known as soursop tree known for its anti-tumor and anti-cancer properties . The following are photos of the fruit trees. The Durian photo is from the web. Note that it almost look like a jack fruit tree, except that the leaves are bigger and shiny. My desire is to have a passion fruit tree in the near future. You are welcome to visit my orchard and flower gardens any time, if perchance you are in the vicinity of The Chateau Du Mer Beach Resort and Conference Center.
The Rambutan Tree and Fruits
The Lanzone Tree and Fruits
The Jack Fruit Tree
The Durian Fruit Tree

Disclaimer: Most of the photos and videos included in this blog are not owned by me unless stated. If you are the owner of the photo/video and you would like to be credited, please let me know and I will pay proper attribution after careful verification of your identity and of your 'claimed' image/s. The photos/videos used in this blog are results of myGoogle and other Internet searches. Thank you and if you enjoy this blog, help support it by clicking on the ads.

Marinduque Mainland from Tres Reyes Island

View of Mainland Marinduque from Tres Reyes Island-Click photo to link to Marinduque Awaits You